The assets are the remaining properties from the Silvertower Portfolio, a portfolio of 720 multi-family residential units located in Berlin’s popular Friedrichshain district, which Benson Elliot Real Estate Partners II, L.P. (the “Fund”) acquired in 2010 for €36.7 million in a joint venture with Hirling Capital Investment Services GmbH. The deal follows the sale of c. 50% of the portfolio in July 2012 to Akelius Berlin GmbH, the German subsidiary of Sweden-based Akelius Fastigheter AB.
After acquiring the portfolio, Benson Elliot undertook a rigorous asset management programme to maximise income, reduce voids and stabilise the properties. Pricing of the sales to WBM and Akelius is confidential; across the two sales, however, the Fund has achieved a return on its investment of over 2x.
Commenting on the disposal, Philipp Braschel, Principal at Benson Elliot, said:
“The sale of the remaining Silvertower assets concludes a very successful investment for Benson Elliot, underlining our ability to source attractive properties with strong fundamentals, and to generate value on behalf of our investors. The current market offers an increasing number of opportunities to acquire assets where we can apply our real estate expertise to the task of growing value; we are closely monitoring the market to take advantage of these when they become available.”
In line with this strategy, Benson Elliot Real Estate Partners III, L.P. acquired the TOR Residential Portfolio, a multi-family portfolio of 80 properties / 3,100 units in Germany in May 2012.